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The data-driven manager sees mid-market, last-mile warehouses as a once and future investment strategy.
The New York-based manager believes lenders will be receptive to financing new deals and rehabs in the fast-growing sector.
Colliers arranged the financing on behalf of the borrower, North River Leerink.
The deal backs 3650’s forecast that there will be long-term demand for short-occupancy rental units in South Florida.
Returns
The manager argued that property debt can provide investors with clear risk-adjusted value, despite enhanced lending market risk, in a new paper.
Disruption is impacting warehouse lenders’ ability to originate loans and hit targets.
Borrowers are wary of locking in long-term fixed-rate financing due to concerns about the impact of rising interest rates.
The sponsor locked in a $160m loan from Progress Capital just before the Federal Reserve raised rates by 75 basis points last week. 
Much of a mixed-use property’s success comes down to where it is and if its retail component is in an up-and-coming shopping area.
While the fundamentals of the multifamily sector are strong, with solid demand drivers and steadily rising rents, this does not mean these properties are entirely insulated from the current environment. 
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